TOKYO, July 14 (Reuters) – The U.S. dollar touched a three-month high versus the euro and a one-week high versus the yen on Wednesday, after heated U.S. inflation spurred bets of faster monetary policy tightening than Federal Reserve officials have so far signalled.

The dollar strengthened to $1.17720 per euro, the highest since April 5, for a second day running on Wednesday, and was last little changed from Tuesday at $1.17755.

It rose to 110.70 yen for the first time since July 7, last trading about flat at 110.66.

The greenback also remained just shy of the $0.6918 mark against the New Zealand dollar, reached on Tuesday for the first time since November. It last traded largely unchanged at $0.6956 ahead of a policy update by the Reserve Bank of New Zealand, with economists largely expecting no changes.

“Another hotter-than-expected U.S. CPI print has got the market wondering whether the lift in inflation will prove to be transitory…

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